A SENIOR Shenzhen official has reiterated that Chinese individuals and enterprises will be allowed to buy hard currency B shares in the city. The Communist Party chief of the special economic zone, Li Youwei, told Xinhua (the New China News Agency) that Shenzhen was considering establishing one or two Sino-foreign funds to invest in the domestic A-share market. While B shares are restricted to foreign investors, there is an increasing trend for Chinese residents holding foreign exchange to buy them. One Shenzhen resident said: 'In many cases, Shenzhen residents who have relatives and friends in Hong Kong have been buying B shares through them.' Domestic investors buying B shares has become so common that officials are believed to be turning a blind eye to it. The distinction between A shares and B shares is dwindling, as China seeks to achieve a fully convertible yuan. A shares are traded in yuan and are meant for domestic investors, while B shares are traded in US dollars in Shanghai and Hong Kong dollars in Shenzhen.